INVESTOR PRESENTATION This presentation has been prepared by VTB - - PowerPoint PPT Presentation

INVESTOR PRESENTATION

August 2019

This presentation has been prepared by VTB Bank (PJSC) (“VTB”) and has not been independently verified. This presentation does not constitute or form part or all of, and should not be construed as, any offer of, or any invitation to sell or issue, or any solicitation of any offer to purchase, subscribe for, underwrite or otherwise acquire, or a recommendation regarding, any shares or other securities representing shares in, or any other securities of VTB, or any of its subsidiaries, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or any commitment whatsoever or any investment decision. Some of the information in this presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of VTB and its subsidiaries (together with VTB, the "Group"). Forward-looking statements are statements that are not historical facts. They include statements about our beliefs and expectations and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently available to the management of VTB. Such forward-looking statements are based on numerous assumptions, beliefs and expectations regarding the Group's present and future business strategies, financial conditions, targets and the operating environment. We caution you that these statements are not guarantees of future performance and involve risks, uncertainties and other important factors that we cannot predict with certainty. Accordingly, our actual outcomes and results may materially differ from what we have expressed or forecasted in the forward-looking statements. These forward-looking statements speak only as at the date of this presentation and are subject to change without notice. We assume no obligation to update or revise these statements whether as a result of new information or for any other reason or to make them conform to actual results. Certain numbers and ratios contained herein, related to past dates and periods, might have been restated in accordance with the latest financial statements issued, and hence differ from the ones presented in the previous communications. Figures shown in this presentation are based on figures disclosed in the annual and interim financial statements of the Group. However, figures used in this presentation might have been rounded, which could result in slight differences in percentage changes compared to those provided in such financial statements.

VTB at a Glance Macro Environment in Russia Strategy and Guidance Business Overview Financials Appendix Transformation 9 12 4 15 19 24 33

4

VTB AT A GLANCE

5

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

OVERVIEW OF VTB GROUP VTB Group

17

EMPLOYEES

82

BRANCH NETWORK

1.7

GLOBAL PRESENCE

countries

19.3% 20.9%

LOANS TO INDIVIDUALS

16.6% CREDIT RATINGS

BBB-

Moody’s DATA AS OF 30-JUN-19

CLIENT BASE

13

ATMs ASSETS

15.1

▲70 bp ytd ▲60 bp ytd ▲60 bp ytd ▲20 bp ytd ▲90 bp ytd ▲40 bp ytd

MARKET SHARE AS OF 30-JUN-19

MORTGAGE DEPOSITS OF INDIVIDUALS

MARKET CAPITALISATION

ASSETS CORPORATE LOANS CORPORATE DEPOSITS

in Russia

23.3% 18.4% 14.9%

15

thsd in Russia RUB trln thsd in Russia ruAAA Baa3

8.2

USD bn thsd VTB Group mln clients in Russia

6

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

• 58

1,260 142 198

1,536

30-Jun-19

998 1,319 1,276 1,345 1,276 1,383 1,405 1,400

219 200 166 169 182 161 153 136

1,217 1,519 1,442 1,514 1,458 1,544 1,558 1,536

31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 01-Jan-18 31-Dec-18 31-Mar-19 30-Jun-19

9.8% 12.4% 12.9% 13.1% 12.5% 12.0% 12.3% 12.0% 12.0% 14.3% 14.6% 14.8% 14.3% 13.5% 13.7% 13.2%

VTB OWNERSHIP STRUCTURE AND CAPITAL COMPOSITION

STRUCTURE OF EQUITY CAPITAL

FREE FLOAT 39.1% FEDERAL AGENCY FOR STATE PROPERTY MANAGEMENT

60.9%

BASEL CAPITAL RUB BN

BASEL CAPITAL COMPOSITION

ORDINARY SHARES (HELD BY FEDERAL AGENCY FOR STATE PROPERTY MANAGEMENT) 12.1% ORDINARY SHARES IN FREE FLOAT 7.8% PREFERENCE TYPE 1 SHARES (HELD BY MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION) 32.9% PREFERENCE TYPE 2 SHARES (HELD BY STATE CORPORATION DEPOSIT INSURANCE AGENCY) 47.2% STATE-OWNED 92.2%

19.9%

INSTITUTIONAL INVESTORS

35.9%

INDIVIDUAL INVESTORS

3.3%

DATA AS OF 1-JUN-19

STRUCTURE OF VOTING RIGHTS

TOTAL CAR TIER I RATIO

TIER I PERPETUAL EUROBOND TIER I W/O PERPETUAL TIER II CAPITAL LESS INVESTMENTS TIER I +20 bp ytd

PRE-IFRS 9 POST-IFRS 9

7

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

REPORTS

VTB CORPORATE GOVERNANCE SYSTEM

APPROVES ELECTS REPORTS

REPORTS ELECTS

ELECTS APPOINTS APPOINTS

APPOINTS REPORTS

PREPARES RECOMMENDATION PREPARES RECOMMENDATION PREPARES RECOMMENDATION PREPARES RECOMMENDATION APPOINTS APPOINTS

Andrey Kostin

President and Chairman

• f VTB Management Board

Anton Siluanov

Chairman

• f VTB Supervisory Council

First Deputy Prime Minister - Finance Minister of Russia

SUPERVISORY COUNCIL

11 MEMBERS

INCLUDING 4 REPRESENTATIVES OF MINORITY SHAREHOLDERS

MANAGEMENT BOARD

13 MEMBERS

INTERNAL AUDIT DEPARTMENT AUDIT COMMITTEE STRATEGY AND CORPORATE GOVERNANCE COMMITTEE STATUTORY AUDIT COMMISSION

GENERAL MEETING OF SHAREHOLDERS

INDEPENDENT AUDITOR STAFF AND REMUNERATION COMMITTEE CORPORATE SECRETARY

REPORTS

8

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

VTB GROUP OPERATING MODEL IN LINE WITH BEST GLOBAL PRACTICES

CORPORATE-INVESTMENT BANKING RETAIL BUSINESS MEDIUM AND SMALL BUSINESS

#1 Investment bank and #2 Corporate bank in Russia

7,673 RUB BN 1,679 RUB BN

BUSINESS WITH LARGE CORPORATE CLIENTS Broad corporate client base (coverage BUSINESS WITH INDIVIDUALS BUSINESS WITH SMALL CORPORATE AND MID-CORPORATE CLIENTS wide regional franchise Over 1,700 branch network and 12.5 mln clients in Russia with leading Russian companies across

CORPORATE CENTER

ADMIN HR STRATEGY OPERATIONS PR AUDIT AND COMPLIANCE MARKETING RISK MANAGEMENT

CONTROL SUPPORT

c

LEGAL SECURITY IT FINANCE

5,387 RUB BN

all economic sectors 500,000 mid-corporate banking clients

6M’19 ASSETS

and c. 17,000 ATMs, JV with the Russian Post: #1 retail franchise in Russia (c. 17,000 retail

• utlets and c. 5,000 ATMs

and small business clients

• f Post Bank)

in Russia >80%) with long-term relationships

9

MACRO ENVIRONMENT IN RUSSIA

10

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

MACRO ENVIRONMENT IN RUSSIA

CPI DEC/DEC USD/RUB (CBR) OIL PRICE (URALS, AVG) CBR KEY RATE (AVG) GDP INVESTMENTS IN FIXED CAPITAL INDUSTRIAL PRODUCTION RETAIL TURNOVER

2014 2015 2016 2017 2018 6M’19

FOR 6M’19 JUN/JUN

SINCE 29-JUL-19: 7.25% (ACTUAL)

OIL PRICE USD AND EXCHANGE RATE RUB INFLATION AND CBR KEY RATE RUSSIAN MACROECONOMIC INDICATORS %

7.9% 12.6% 10.6% 9.1% 7.4% 7.7% 11.4% 12.9% 5.4% 2.5% 4.3% 4.7%

2014 2015 2016 2017 2018 6M'2019 0.7

• 2.3

0.3 1.6 2.3 0.5 2.5

• 0.8

2.2 2.1 2.9 2.6 2.7

• 10.0
• 4.6

1.3 2.6 1.7

• 1.5
• 10.1
• 0.2

4.8 4.3

97.6 51.0 41.6 53.1 70.8 65.8

2014 2015 2016 2017 2018 6М'19

38.0 60.7 66.9 58.3 62.5

65.3

11

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION 18,553 23,219 24,200 25,987 28,460

28,983

2014 2015 2016 2017 2018 6M'2019 11,330 10,684 10,804 12,174 14,901

16,329

2014 2015 2016 2017 2018 6M'2019 24,443 27,924 25,149 27,004 31,424

31,453

2014 2015 2016 2017 2018 6M'2019 31,939 36,172 34,036 34,786 38,947

38,602

2014 2015 2016 2017 2018 6M'2019

CORPORATE LOANS

RUSSIAN BANKING SECTOR DYNAMICS

RUSSIAN BANKING SECTOR

▼1% ytd

RUB BN

RETAIL LOANS

▲10% ytd

CORPORATE FUNDING RETAIL FUNDING

▲ 0.1% ytd ▲ 2% ytd

12

STRATEGY AND GUIDANCE

13

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

KEY VTB GROUP STRATEGIC PRIORITIES FOR 2022 STRATEGIC PRIORITIES:

FINANCIAL COMMITMENTS:

LEADERSHIP IN CUSTOMER SATISFACTION AMONG PEER BANKS BETTER PERSONNEL ENGAGEMENT

• 100% PAPERLESS WORKFLOW

EXEMPLARY TIME-TO-MARKET MOTIVATED AND EFFICIENT TEAM

• >50% SALES VIA DIGITAL CHANNELS

(RETAIL AND SME)

• 100% PRODUCTS AVAILABILITY DIGITAL

24/7 ACCESSIBILITY

ROE 15% CIR 32%

A LEADER IN SELECTED ECOSYSTEMS

FOCUS ON CLIENT- CENTRICITY BREAKTHROUGH IN DIGITALIZATION SET UP AND ROLL-OUT IN DIGITAL ECONOMY BUILDING A ROBUST AND AGILE OPERATIONAL AND TECH PLATFORM CREATING HIGHLY EFFECTIVE ORGANIZATION & CULTURE

Dividend payout 50% Net income RUB 300 bn

14

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

2019 GUIDANCE

Legal entities

In line with industry

≈ 1.2 %

MARKET GROWTH ≈ 5%

LOAN GROWTH

Individuals

Above industry

LOAN GROWTH

MARKET GROWTH ≈ 20%

COR ≈ 40 % CIR ≈ 3.5 % NIM ≈ 200 RUB BN Net profit

15

FROM BUILDING TRADITIONAL BANKING PLATFORM TO BECOMING A NEW ELEMENT OF CLIENT LIFESTYLE

16

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

2016 2004 2005 2008 2010 2011 2013

LEGAL MERGER WITH VTB BANK (MAY’16)

ORGANIC GROWTH M&A DEALS

2018

LEGAL MERGER WITH VTB BANK (JAN’19) LAUNCH OF POST BANK GUTA BANK PROMSTROIBANK

LETO BANK

BUILD-UP OF TRADITIONAL BANKING PLATFORM: MIX OF MERGERS AND ORGANIC GROWTH

STARTING FROM 30 SEPTEMBER 2018, POST BANK IS ACCOUNTED AS JV VTB ACQUIRED CONTROLLING STAKE IN VOZROZHDENIE BANK (OCT’18) VTB ACQUIRED CONTROLLING STAKES IN WEST SIBERIAN COMMERCIAL BANK AND SAROVBUSINESSBANK (JAN’19)

2019

17

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

VTB GROUP TRANSFORMATION

• 1. DIGITALIZATION
• 2. TECHNOLOGIES

SETTLEMENTS AUTHENTICATION & BIOMETRICS TRANSACTIONS AGILE AI & ROBOTISATION COMMUNICATION OPEN API OTHER DevSecOps VTB CLOUD DATA MONETIZATION

• 3. ECOSYSTEM

Client

BECOMING NEW ELEMENT OF CLIENT LIFESTYLE RESTRUCTURING TRADITIONAL BANKING FUNCTIONS TO CREATE AND ADOPT PRODUCTS AND SERVICES TO VTB ECOSYSTEM MAXIMIZING SALES THROUGH DIGITAL CHANNELS

LIFESTYLE BANKING MOBILE HOUSING ECOSYSTEM B2B KEY ELEMENTS KEY TECHNOLOGICAL CHANGES

2019 2022

18

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

MY SMART CITY APP

►FIRST APP COMBINES CITY SERVICES OF MOSCOW GOVERNMENT AND VTB ► INTEGRATION WITH PORTAL OF PROVIDERS (PUBLIC PROCUREMENT) SINGLE SIGN ON ► VTB SMALL FORM PROCUREMENT (<1 MLN RUB)

FIRST STEPS IN ROLLING OVER VTB ECOSYSTEM

B2B PLATFORM FOR SME

B2B BUSINESS CONNECT

“EXPORT MANAGER” SERVICE

VTB MOBILE

IN PARTNERSHIP WITH TELE-2

LAUNCH: AUTUMN 2019

PROCUREMENT

LIFESTYLE BANKING HOUSING ECOSYSTEM

LAUNCH: WINTER 2019

NEW DIGITAL PLATFORM FOR FULL CYCLE OF REAL ESTATE SERVISES

MOBILE VIRTUAL NETWORK OPERATOR

BICYCLE RENTAL

►4.25 MLN RENTS IN 2018 ► ACCELERATION WITH RUSSIAN EXPORT CENTER

POTENTIAL PARTNERSHIP

VTB COLLECTION

►LOYALTY PROGRAMME

MARKET PLACE FOR SEIZED PROPETY SALE LAUNCH: AUG 2019

INSURANCE

Client

FULL VERSION : 2020

MARKET PLACES

• PLAN
• LAUNCHED

19

BUSINESS OVERVIEW

20

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION 103 125 126

6M'18 (1) 6M'18 6M'19 2.2% 0.8% 1.5% 1.6% 1.6% 4.1% 3.3% 45.8% 44.0% 40.5%

234 261 260

2016 2017 2018

69 45

6M'18 6M'19

211 172 167

2016 2017 2018

238 214

6M'18 6M'19 3.7% 4.1% 3.9%

415 460 469

2016 2017 2018

76.8 213.6 44.9 11.3 269.8

• 45.4
• 125.6
• 22.0

NII NFCM Other Net operating income Provision charge Staff and administrative costs Tax Net profit

99.8 76.8

6M'18 6M'19

14.0% 10.1% 3.8% 8.5% 12.5%

54.4 122.6 181.5

2016 2017 2018

ON TRACK TO DELIVER 2019 GUIDANCE

41.3% 44.3% ▼23%

NET PROFIT RUB BN

PROVISIONS CHARGE (2) RUB BN

COR

ROE

(2) Including provision charge for impairment of debt financial assets and provision charge for impairment of other assets, credit related commitments and legal claims

NET INTEREST INCOME RUB BN

NIM

STAFF & ADMIN COSTS RUB BN

CIR ▲125% ▲48% ▲12% ▼0.4% COSTS GROWTH DRIVEN BY ROLLOUT OF TRANSFORMATION & RECENT ACQUISITIONS ▼19% ▼3% ▼34% COR SUPPORTED BY SEVERAL LARGE PROVISIONS RELIESED IN CORPORATE BUSINESS 3M’19 ▲11% ▲2% ▼10% NIM UNDER PRESSURE DUE TO CHALLENGING ENVIRONMENT, BOTTOMED OUT IN MARCH-APRIL

KEY COMPONENTS OF NET PROFIT

TO DATA FOR COMPARABLE CONSOLIDATION PERIMETER(1)

▼10% ▼3% ▲5% ▲9% ▼43% ▼68% ▼15% ▼4% ▼34% ▼25% ▲22% ▲1% ▲6% ▼4% ▼23% ▼21% YOY CHANGE:

TO DATA AS REPORTED

79% 17% 4%

▲1%

(1) 1H’18 financial results were adjusted to reflect the changes in the groups structure (deconsolidation of: Post bank, Multicarta and VTB Bank Ukraine, disposal of VTB Insurance Group and VTB Bank Belgrade). Financial results were not adjusted to reflect the acquisitions

• f “Vozrozhdenie Bank“, PJSC, “Sarovbusinessbank”, PJSC and “Zapsibcombank”, PJSC, which occurred in the second half of 2018 and the beginning of 2019. The Group management believes that the impact of these acquisitions on the Group’s financial performance for

the first half of 2018 individually or in aggregate would have been immaterial had it been applied as if the acquisitions happened prior to 1 January 2018

▲22%

21

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION 2,925 3,299

31-Dec-18 30-Jun-19

3,875 3,620

31-Dec-18 30-Jun-19

1,405 1,518

31-Dec-18 30-Jun-19

1,289 1,453

31-Dec-18 30-Jun-19

6,667 6,517

31-Dec-18 30-Jun-19

4,202 4,651

31-Dec-18 30-Jun-19

DEPOSITS(1) LOANS(1)

ROBUST BUSINESS GROWTH WITH FOCUS ON RETAIL & SME

▲13%

> MARKET GROWTH (▲2%)

▲11% ▼2%

DEPOSITS LOANS

> MARKET GROWTH (▲10%)

RETAILRUB BN CIB RUB BN SME RUB BN

DEPOSITS LOANS

▼7% ▲8% ▲13%

(1) Data from Segment analysis FY’18 and 1H’19 FS

22

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

Bank Fees USD / mln % share VTB Capital 30.9 22.2 2 Credit Suisse 26.7 19.2 3 Citi 12.4 9.0 4 JP Morgan 9.0 6.5 5 Gazprombank 8.6 6.2

Source: Refinitiv Russia Investment Banking Review 1H 2019

Bookrunner Deal value / USD mln % share # of deals VTB Capital 6,860 26.7 46 2 Gazprombank 5,968 23.2 52 3 Sberbank CIB 2,620 10.2 57 4 JP Morgan 1,318 5.1 10 5 Societe Generale 1,203 4.7 14

Source: Dealogic Russia Total DCM league tables 1H 2019

#1 IN INVESTMENT BANKING IN RUSSIA #1 DCM BOOKRUNNER IN RUSSIA AND CIS

VTB CAPITAL: BEST INVESTMENT BANK IN RUSSIA

Best Investment Bank in Emerging Markets (2018,2019) Best Investment Bank in Russia (2010-2017, 2019) Best Investment Bank in CEE (2013-2019) Best Financial Services in Russia (2016-2019) Best investment bank in Russia (2010-2019)

Bookrunner Deal value / USD mln % share # of deals VTB Capital 5,792 11.5 42 2 Gazprombank 5,275 10.5 41 3 JP Morgan 4,381 8.7 22 4 Citi 3,722 7.4 20 5 Societe Generale 2,921 5.8 28

Source: Bloomberg Eastern European DCM league tables 1H 2019

#1 DCM BOOKRUNNER IN EASTERN EUROPE

#1 DCM bookrunner in Russia (1H 2019) #1 bank in trade and export finance in Eastern Europe (1H 2019)

23

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

01-Jul-18 01-Oct-18 01-Jan-19 01-Apr-19 01-Jul-19

CAPITAL LEVELS SUFFICIENT TO FUND FURTHER GROWTH

01-Jul-18 01-Oct-18 01-Jan-19 01-Apr-19 01-Jul-19

Tier I ratio

IFRS

▼ 30 BP YTD FLAT YTD 12.1% 11.9% 12.0% 12.3% 12.0%

Total CAR

13.7%

N20.0

▼ 20 BP YTD 10.8% 11.0% 11.4% 11.6% 11.2%* 13.2% 13.5% 13.4% 13.8%

N20.2

9.3%* 9.9% 9.0% 9.4% 9.1% ▼ 30 BP YTD

Dividend payout in the amount of RUB 26.8 bn

12% of FY2018 RAS net profit 15% of FY2018 IFRS net profit N20.1

▼ 50 BP YTD 8.5%* 9.0% 8.0% 8.4% 8.1%

►BASEL

RAS

►CBR

(1)- Preliminary estimate

24

FINANCIALS

25

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

11% 11% 13% 13% 12% 11% 11% 12% 67% 69% 70% 70% 70% 72% 71% 72% 9% 10% 8% 6% 6% 5% 7% 4% 5% 5% 5% 4% 5% 5% 5% 5% 8% 5% 4% 7% 7% 7% 6% 7%

12,191 13,645 12,588 13,009 12,940 14,761 14,842 15,055

31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 01-Jan-18 31-Dec-18 31-Mar-19 30-Jun-19 6% 6% 6% 6% 6% 4% 6% 6% 2% 2% 2% 2% 2% 2% 2% 2% 5% 5% 4% 3% 3% 2% 2% 2% 65% 60% 66% 79% 79% 79% 76% 79% 16% 14% 9% 1% 1% <1% <1% <1% 6% 13% 13% 9% 9% 13% 14% 11%

11,352 12,188 11,175 11,530 11,529 13,238 13,295 13,515

31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 01-Jan-18 31-Dec-18 31-Mar-19 30-Jun-19

ASSETS RUB BN

(1) Includes investment in associates, premises and equipment, investment property, intangible assets and goodwill, deferred tax assets and others OTHER ASSETS (1) SECURITIES PORTFOLIO LOANS TO CUSTOMERS DUE FROM OTHER BANKS CASH AND MANDATORY RESERVES

ASSETS AND LIABILITIES STRUCTURE

LIABILITIES RUB BN

OTHER LIABILITIES SUBORDINATED DEBT DEBT SECURITIES ISSUED CUSTOMER DEPOSITS DUE TO BANKS AND OTHER BORROWED FUNDS COLLATERALISED FUNDING FROM THE CBR PRE-IFRS 9 POST-IFRS 9

BY CURRENCY

FX RUB FX RUB

PRE-IFRS 9 POST-IFRS 9

73% 57% 27% 43% 30-Jun-19 31-Dec-14 66% 53% 34% 47% 30-Jun-19 31-Dec-14 ▲16% ▲17%

26

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

99.5% 102.8% 104.0% 101.5% 62% 60% 59% 60% 60% 58% 55% 56% 38% 40% 41% 40% 40% 42% 45% 44%

5,669 7,267 7,347 9,145 9,145 10,404 10,149 10,738

31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 01-Jan-18 31.дек.18 31-Mar-19 30-Jun-19 79% 81% 77% 75% 74% 74% 72% 72% 21% 19% 23% 25% 26% 26% 28% 28%

9,150 10,110 9,487 9,773 9,841 11,424 11,288 11,623

31-Dec-14 31-Dec-15 31-Dec-16 31-Dec-17 01-Jan-18 31-Dec-18 31-Mar-19 30-Jun-19

NET CUSTOMER LOANS / CUSTOMER DEPOSITS (LDR)

LOANS AND ADVANCES TO CUSTOMERS RUB BN

BY INDUSTRY

LOAN PORTFOLIO AND CUSTOMER DEPOSITS

INDIVIDUALS LEGAL ENTITIES

CUSTOMER DEPOSITS RUB BN

OIL AND GAS

METALS MANUFACTURING GOVERNMENT BODIES TRANSPORT TRADE AND COMMERCE ENERGY FINANCE

BUILDING CONSTRUCTION TELECOMMUNICATIONS AND MEDIA

CHEMICALS

BY CURRENCY

NET LOANS CUSTOMER DEPOSITS

OTHER

INDIVIDUALS

8,975 9,630

24%

POST BANK ACCOUNTED AS JV ( X )

PRE-IFRS 9 POST-IFRS 9 76%

31-Dec-14 30-Jun-19

38% 62%

FX RUB 65% 53% 35% 47% 30-Jun-19 31-Dec-14

NET LOANS

INDIVIDUALS LEGAL ENTITIES

POST BANK ACCOUNTED AS JV ( X )

▲18% 150.6% 129.9% 120.5% 100.3% ▲21% ▲17% ▲20%

PRE-IFRS 9 POST-IFRS 9

75% 68% 25% 32% 30-Jun-19 31-Dec-14

28% 10% 9% 7% 7% 6% 6% 6% 5% 4% 4% 3% 5% 21% 11% 9% 7% 9% 10% 7% 5% 2% 5% 6% 5% 3%

27

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION 17 31 37 72 9 45

1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 103.5% 103.7% 112.0% 112.0% 110.8% 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19

743 752 654 658 657 773

30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19

760 779 732 737 728 800

30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19 7.8% 7.1% 6.4% 6.5% 6.3%

LOAN BOOK QUALITY

COVERAGE RATIO LOAN WRITE-OFFS RUB BN NPLS (90+) RUB BN

NPL RATIO (1) NPLS

PROVISION FOR LOAN IMPAIRMENT RUB BN

ALLOWANCE FOR LOAN IMPAIRMENT / TOTAL GROSS LOANS ALLOWANCE FOR LOAN IMPAIRMENT (1) The Group defines non-performing loans (NPL) as lifetime expected credit losses (ECL) credit-impaired loans with contractual principal and or interest payments overdue more than 90 days and purchased or originated credit impaired (POCI) loans with principal and or interest payments becoming overdue more than 90 days after the date of initial recognition. POST BANK CONTRIBUTION

7.5% 7.6%

▼6% ▼1% ▲3% ▲1% ▲1% ▼13% ▲1%

POST BANK CONTRIBUTION

▲730bp 102.3%

▲850bp 1H’19: 54 RUB BN 1H’18: 49 RUB BN ▼0.5%

POST BANK ACCOUNTED AS JV POST BANK ACCOUNTED AS JV DATA AS REPORTED

flat 7.6% 6.9% 5.7% 5.8% 5.7% ▲1%

28

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION 5.7% 5.7%

6M'19 98.4% 98.7% 0.7% 0.6% 0.9% 0.7%

11,424 11,623

31-Dec-18 30-Jun-19 31-Dec-18 30-Jun-19

WATCH

NPLs RUB bn LOANS AT AMORTISED COST RUB BN BY ECL STAGES BY MEASUREMENT APPROACH RUB BN

Stage 1 Stage 2

PASS SUB-STANDARD

NPL RATIO

DOUBTFUL NPLS LOANS AT AMORTISED COST LOANS AT FAIR VALUE THROUGH P&L LOANS AT FAIR VALUE THROUGH OCI

11,465

82.4% 8.8%

GROSS LOAN PORTFOLIO BREAKDOWN UNDER IFRS 9

▲2%

8.8% 95% 4% 1%

11,242

80.9% 9.7% 9.4%

45.6

PROVISION CHARGE

Stage 3 + POCI

Allowance ratio: 0.9% Allowance ratio: 12.2% Allowance ratio: 51.6%

STAGE 2: LECL STAGE 1: 12 MONTH ECL STAGE 3+POCI: LECL CREDIT-IMPAIRED AND PURCHASED OR ORIGINATED CREDIT IMPAIRED 14.9 18.1 12.6 11% 2% 87% 2% 32% 2% 64%

654 657

31-Dec-18 30-Jun-19

29

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

2.0% 1.7% 1.4% 0.5% 6M'18 6M'19

PROVISION CHARGE AND COST OF RISK

48.2 18.5 26.5 27.1

74.7 45.6

6M'18 6M'19 2.2% 2.0% 1.6% 1.8% 1.7% 2.2% 1.3% 1.7% 0.0% 0.9% 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

PROVISION CHARGE FOR IMPAIRMENT OF LOANS RUB BN

PROVISION CHARGE FOR CREDIT LOSSES ON LOANS TO INDIVIDUALS PROVISION CHARGE FOR CREDIT LOSSES ON LOANS TO LEGAL ENTITIES

COST OF RISK BREAKDOWN

COST OF RISK (1) LOANS TO INDIVIDUALS LOANS TO LEGAL ENTITIES (1) Provision charge for credit losses divided by average gross loans and advances to customers

IND:▼50bp 2.2% 1.5% 1.7% 0.5% 1.1% 1.6% 0.8% LE:▼130bp IND:▼30bp LE:▼90bp 39.4 24.3 35.1 0.5 18.0 14.5 14.6 11.4 13.7 13.4

53.9 38.9 46.5 14.2 31.4

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 ▼42% ▼39% 0.5

30

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

9.4% 8.8% 8.7% 8.4% 4.9% 5.3% 4.7% 5.0% 6M'18 6M'19 9.3% 9.0% 8.8% 8.8% 8.9% 8.7% 8.4% 8.4% 8.3% 8.5% 4.8% 4.8% 5.1% 5.3% 5.3% 4.6% 4.5% 4.6% 5.0% 5.1% 2Q'18 3Q'18 4Q'18 1Q'19 4Q'19

238 214

6M'18 6M'19 ▼80bp 4.1% 3.3% 4.2% 3.9% 3.4% 3.2% 3.3%

NET INTEREST INCOME RUB BN AND INTEREST MARGIN %

NET INTEREST INCOME AND NIM

▼10% ▼90bp ▼10%

122 121 110 104 109

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

YIELD ON TOTAL INTEREST BEARING ASSETS YIELD ON CUSTOMER LOANS COST OF TOTAL INTEREST BEARING LIABILITIES COST OF CUSTOMER DEPOSITS

AVERAGE YIELDS AND COST OF FUNDS %

31

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

64% 63% 9% 7% 7% 7% 16% 18% 4% 5%

60.8 71.3

6M'18 6M'19 65% 64% 53% 61% 65% 9% 10% 9% 8% 6% 7% 7% 9% 6% 7% 17% 13% 22% 20% 17% 2% 6% 7% 5% 5%

32.1 32.1 31.1 30.9 40.4

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

42.9 44.9

6M'18 6M'19

FEE AND COMMISSION INCOME BREAKDOWN RUB BN

NET FEE AND COMMISSION INCOME NET FEE AND COMMISSION INCOME / AVG ASSETS (NET)

NET FEE AND COMMISSION INCOME RUB BN

INSURANCE PRODUCTS DISTRIBUTION AND OTHER AGENCY SERVICES SETTLEMENT, TRADE FINANCE AND CASH TRANSACTIONS OTHER GUARANTEES AND OTHER CREDIT RELATED COMMITMENTS OPERATIONS WITH SECURITIES AND ON CAPITAL MARKETS

FEE AND COMMISSION INCOME

▲26% ▲17% ▲17% ▲5% 0.7% 0.6% 0.5% 0.5% 0.7% 0.7% 0.6%

22.3 20.9 16.8 18.9 26.0

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

32

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION 51 76 80 52 49 46

103 125 126

comparable consolidation perimeter 1H'18 1H'19

36 38 43 41 40 26 24 29 20 25

62 63 73 61 65

2Q'18 3Q'18 4Q'18 1Q'19 2Q'19

STAFF COSTS AND ADMINISTRATIVE EXPENSES RUB BN

COST / INCOME RATIO COST / AVG. ASSETS

NUMBER OF EMPLOYEES THSD

STAFF AND ADMINISTRATIVE EXPENSES

1.8% 1.8% 2.0% 1.7% 1.7% 37.6% 38.5% 44.6% 44.3% 48.9%

STAFF COSTS INCLUDING PENSIONS ADMINISTRATIVE EXPENSES

▲5% 1.9% 1.7% 39.4% 46.6% ▲0.7% 14.9% - ORGANIC GROWTH 7.3% - EFFECT OF RECENT M&As ▲22.2%

VTB BANK OTHER COMPANIES OF VTB GROUP

59% 74% 75% 72% 72% 41% 26% 25% 28% 28%

96.6 78.1 77.2 81.2 81.9

30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-19 30-Jun-19

(1) 1H’18 financial results were adjusted to reflect the changes in the groups structure (deconsolidation of: Post bank, Multicarta and VTB Bank Ukraine, disposal of VTB Insurance Group and VTB Bank Belgrade). Financial results were not adjusted to reflect the acquisitions of “Vozrozhdenie Bank“, PJSC, “Sarovbusinessbank”, PJSC and “Zapsibcombank”, PJSC, which occurred in the second half of 2018 and the beginning of 2019. The Group management believes that the impact

• f these acquisitions on the Group’s financial performance for the first half of 2018 individually or in aggregate would have been immaterial had it been applied as if the acquisitions happened prior to 1 January 2018

(1)

Post Bank: 18.5 VTB Insurance: 5.7 57.3

INCLUDING:

VTB Bank 4.5

INCLUDING:

SarovBusinessBank: 1.0 ZapSibComBank: 3.0 Vozrozhdenie Bank: 58.6 VTB Bank

APPENDIX

34

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

1H’19 1H’18 Change 2Q’19 2Q’18 Change

NIM 3.3% 4.1%

• 80bp

3.3% 4.2%

• 90bp

CoR 0.8% 1.6%

• 80bp

1.1% 2.2%

• 110bp

Cost / Assets 1.7% 1.9%

• 20bp

1.7% 1.8%

• 10bp

CIR 46.6% 39.4%

• 720bp

48.9% 37.6% 130bp ROE 10.1% 14.0%

• 390bp

7.9% 12.3%

• 440bp

1H’19 1H’18 Change 2Q’19 2Q’18 Change

Net interest income 213.6 238.1

• 10.3%

109.4 121.8

• 10.2%

Net fee and commission income 44.9 42.9 4.7% 26.0 22.3 16.6% Net other income 11.3 35.3

• 68.0%
• 2.6

19.6

• 113.3%

Operating income before provisions 269.8 316.3

• 14.7%

132.8 163.7

• 18.9%

Provision charge for credit losses and other provisions

• 45.4
• 69.0
• 34.2%
• 30.2
• 48.3
• 37.5%

Staff costs and administrative expenses

• 125.6
• 124.7

0.7%

• 64.9
• 61.6

5.4% Profit before tax 98.8 122.6

• 19.4%

37.7 53.8

• 29.9%

Income tax expense

• 22.0
• 22.8
• 3.5%
• 7.4
• 9.5
• 22.1%

Net profit 76.8 99.8

• 23.0%

30.3 44.3

• 31.6%

KEY FINANCIAL RATIOS INCOME STATEMENT KEY INDICATORS RUB BN

VTB GROUP FINANCIAL HIGHLIGHTS: P&L AND KEY RATIOS

6M’19 consolidated financial statements

35

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

30-Jun-19 31-Mar-19 Change 31-Dec-18 YTD

Gross loan portfolio 11,623.2 11,287.9 3.0% 11,423.5 1.7% Loans to legal entities 8,323.6 8,121.9 2.5% 8,435.0

• 1.3%

Loans to individuals 3,299.6 3,166.0 4.2% 2,988.5 10.4% Total assets 15,055.3 14,841.8 1.4% 14,760.6 2.0% Customer deposits 10,738.0 10,149.0 5.8% 10,403.7 3.2% Deposits of legal entities 6,029.5 5,582.2 8.0% 5,995.8 0.6% Deposits of individuals 4,708.5 4,566.8 3.1% 4,407.9 6.8% Total liabilities 13,514.7 13,295.2 1.7% 13,237.6 2.1% Total shareholders' equity 1,540.6 1,546.6

• 0.4%

1,523.0 1.2%

30-Jun-19 31-Mar-19 Change 31-Dec-18 YTD

NPL ratio (1) 5.7% 5.8%

• 10bp

5.7% flat LLR ratio 6.3% 6.5%

• 20bp

6.4%

• 10bp

Tier I CAR 12.0% 12.3%

• 30bp

12.0% flat Total CAR 13.2% 13.7%

• 50bp

13.5%

• 30bp

(1) The Group defines non-performing loans (NPL) as lifetime expected credit losses (ECL) credit-impaired loans with contractual principal and or interest payments overdue more than 90 days and purchased or originated credit impaired (POCI) loans with principal and or interest payments becoming overdue more than 90 days after the date of initial recognition.

BALANCE SHEET KEY INDICATORS RUB BN

VTB GROUP FINANCIAL HIGHLIGHTS: BALANCE SHEET

KEY ASSET QUALITY & CAPITAL RATIOS

6M’19 consolidated financial statements

36

FINANCIALS VTB AT A GLANCE BUSINESS OVERVIEW STRATEGY & GUIDANCE APPENDIX MACRO TRANSFORMATION

INTERNATIONAL DEBT MATURITY PROFILE (2) USD MLN

Borrower Currency Amount outstanding (mln) Instrument Maturity Date/Put or Call Option Coupon ISIN

2018 VTB USD 698 Series 12 EMTN 2 Matured and repaid in February 2018 6.32% XS0592794597 VTB CHF 300 Series 3 EMTN 3 Matured and repaid in May 2018 2.9% CH0226747746 VTB USD 1,514 Series 4 EMTN 2 Matured and repaid in May 2018 6.875% XS0365923977 2020 VTB USD 948 Series 10 EMTN 2 October 2020 6.551% XS0548633659 2022 VTB USD 1,500 Series 21 EMTN 2 Subordinated Debt October 2022 6.95% XS0842078536 2024 VTB CHF 350 Series 4 EMTN 3 Subordinated Debt October 2024 (call option) 5.0% CH0248531110 2035 VTB USD 31 Series 6 EMTN 1 June 2035 6.25% XS0223715920 Perpetual VTB USD 2,250 Tier 1 Perpetual Eurobond (call option) Dec 2022 (call option)(1) 9.5% XS0810596832

(1) FIXED UNTIL THE FIRST CALL DATE, THEN RESET ON 6TH DEC 2022 AND EVERY 10TH YEAR THEREAFTER (2) NET OF BOUGHT BACK PUBLIC DEBT. EXCHANGE RATES PUBLISHED BY THE CBR AS OF AUGUST 26, 2019. IN ADDITION TO INTERNATIONAL DEBT, VTB GROUP CURRENTLY HAS RUB 122.2 BN DOMESTIC BONDS

827 1,339 234 25

2020 2022 2024 2035 USD CHF

VTB GROUP PUBLIC DEBT AND HYBRID CAPITAL INSTRUMENTS

Investor Relations Tel: +7 (495) 775-71-39 e-mail: investorrelations@vtb.ru